Prime Business Africa
Over N81.33 billion was spent on hotel rooms in Nigeria in 2025, up from the N58.42 billion expended in 2024, representing a N22.90 billion or 39.20 percent increase, according to Prime Business Africa’s analysis.
The amount is based on revenue generated by Transcorp Hotels and Ikeja Hotel, which are the only publicly-listed hotel companies on the Nigerian Exchange (NGX), also known as the stock market.
Join our WhatsApp ChannelPrime Business Africa’s analysis showed that Transcorp Hotels accounted for 77.58 percent of the hotel room turnover, compared to the 22.41 percent Ikeja Hotel accounted for during the period under review.
In addition, the publication gathered that Transcorp Hotels’ share of the total room revenue dropped from 78.03 percent the company accounted for last year, and Ikeja Hotel’s contribution also declined from 21.96 percent.
Further breakdown showed that Transcorp Hotels’ total revenue was N97.03 billion in 2025, rising by 38.36 percent from the N70.13 billion generated in 2024.
According to Transcorp Hotels’ consolidated and separate financial statements for the year ended December 31, 2025, room booking contributed N63.10 billion to its total revenue, compared to the N45.59 billion recorded in 2024, up by 38.39 percent.
Also, food and beverages accounted for N29 billion in 2025, up by 30.73 percent, when compared to the N22.18 billion generated between January and December 2024.
Transcorp spent N22,63 billion as cost of sales during the period under review, surpassing the N20,41 billion incurred in 2024, reflecting a 10.87 percent increase.
Consequently, Transcorp Hotels was left with a gross profit of N74.40 billion in 2025, rising by 49.64 percent compared to the N49.71 billion reached in the year before.
The company supported its bottom line with a 6.77 percent year-on-year decrease in finance costs, which declined from N4.01 billion to N3.73 billion, while finance income climbed by 121.19 percent, from N594.54 million to N1.31 billion.
At the end of the period under review, Transcorp Hotels notched up N32.81 billion as pretax profit, exceeding the N22.61 billion posted in 2024, indicating a 45.12 percent growth.
Also, income tax rose by double-digit or 42.09 percent to N10.96 billion in 2025, compared to the N7.71 billion tax expense incurred in 2024.
Following the tax deduction, Transcorp Hotels recorded N21.85 billion profit after tax (PAT) last year, against the N14.89 billion reached in 2024, representing a 46.69 percent increase.
Also, during the period under review, Ikeja Hotel generated N25.84 billion in total revenue, exceeding the N18.75 billion grossed in 2024, indicating an increase of 37.80 percent.
The revenue source included room turnover of N18.23 billion between January and December last year, up by 42.09 percent from the N12.83 billion contributed in 2024.
Food and beverages accounted for N6.38 billion of Ikeja Hotel’s total revenue in 2025, compared to the N5.14 billion it accounted for the year before, reflecting 24.16 percent growth.
Ikeja Hotel incurred N13.10 billion as cost of sales between the first quarter (Q1) and fourth quarter (Q4) to provide the services, overshadowing the N11.18 billion spent in 2024.
With the cost of sales rising by 17.21 percent, Ikeja Hotel’s gross profit climbed by 68.21 percent year-on-year, from N7.57 billion to N12.73 billion.
In addition, the bottom line of Ikeja Hotel was boosted by a 76.19 percent year-on-year increase in finance income, which grew from N1.48 billion to N2.61 billion, and a zero finance cost, compared to the N1.32 billion finance cost suffered in 2024.
This led to the company’s profit before tax rising to N12.55 billion last year, up by 47.02 percent from the N8.53 billion reached in 2024.
As a result, Ikeja Hotel’s income tax skyrocketed by 241.36 percent year-on-year to N4.25 billion, from N1.24 billion.
This reduced the post-tax profit to N8.30 billion in 2025, but still surpassed the N7.29 billion profit after tax recorded in the year before, representing a 13.84 percent increase.
For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa
